The Graydon Report on Health Care Funding is a recipe for more tax increases, without any substantive reforms to give patients better quality health care.

This 2002 report of the task force chaired by MLA Gordon Graydon was kept secret from taxpayers until last week. This report correctly points out that government spending on its health care monopoly is growing much, much faster than Alberta' combined inflation and population growth. The Alberta government's spending on health care is up from $4 billion in 1996 to $8.7 billion in 2004. This 118% spending increase since 1996 far exceeds Alberta's 17% population growth and 22% cumulative inflation since 1996. As a percentage of the provincial budget, health care consumed 25% of program spending in 1988, compared to 38% today, and is expected to reach 50% by 2008. The Graydon Report cites new drugs, new technology, high public sector wages and an aging population as factors contributing to these rising costs. Premier Klein and his ministers complain about how "unsustainable" these trends are, but continue to throw more and more tax dollars at the government monopoly.

Rising health care costs should come as no surprise to anyone, considering that there is an infinite demand for more, faster, and better health care. When a public sector monopoly tries to meet an infinite demand, it inevitably consumes more and more tax dollars. Determined to think inside the box, Mr. Graydon and his Tory colleagues ask Premier Klein to consider four different tax increases. First, raise Alberta's provincial income tax from 10% to 12%. Second, double the health care premium tax from $1,056 per family per year to $2,112. Third, give Regional Health Authorities more taxing powers. Fourth, charge patients a "health care deductible" for using the system, in addition to the health care premium tax and other provincial taxes they already pay.

Of these four proposals, only the fourth one creates a link between using the health care system and paying for this use. But even this proposal, like the first three, does not provide patients with choice to get treatment outside of the government's health care monopoly. Charging a "health care deductible" merely forces middle- and higher-income Albertans to pay even more taxes for the same government monopoly. This is unfair because Albertans who earn more money already pay more taxes. For example, an Alberta couple earning $50,000 per year pays $2,133 in provincial income tax, compared to $7,133 paid by a couple earning $100,000 per year. Charging an income-based "deductible" amounts to higher taxes for those who already pay the bulk of Alberta's business, property, income and other taxes.

Premier Klein already raised taxes "for health care" in 2002, even though revenues from the health care premium tax flow into General Revenues like every other provincial tax. Rather than raise taxes again, the federal and provincial governments should allow Canadians to spend their own money on health care outside of the government's monopoly. It's odd - and very unjust - that people have unlimited freedom to spend their money as they please on clothing, food, tobacco, alcohol, houses, cars, and holidays . . . but not health care.

Canadians should have the right to spend their own money - the 51% left over after three levels of government have taken 49% - on the health care services of their choice. But instead, Canadians are suffering and dying on waiting lists in a health care system which ranks a mere 30th place, according to the World Health Organization. Many countries with better health care than Canada have a parallel private system which co-exists alongside the public system. Canada should follow their example. Surely we can do better than 30th place. Waiting lists - and other failures of Canada's health care system - are the direct result of a limited supply, whether of doctors, hospital beds, equipment, etc. Increasing supply by allowing a parallel private system will do far more to address the bottleneck of backlogs in surgeries and procedures than "innovative" tax increases.

The Canada Health Act should be amended to allow all provinces to innovate better health care policies, including the development of a parallel private system. Canada's Constitution gives provinces exclusive jurisdiction over hospitals. Provinces - not Ottawa - pay most of the health care costs. Provinces should be able to learn from each other's successes and failures, just as our federal system allows them to do with other government programs and policies. Further, the Canada Health Act should be amended to include the principles of quality, choice, accountability and sustainability.

Premier Klein should reject the tax increases recommended in the Graydon Report. Rather than raising taxes again, he should challenge the Canada Health Act, promote the development of a parallel private system, and give Albertans the freedom to spend their own money on the health care of their choosing.